The anti-money-laundering provisions of the Patriot Act* are
about to be
noticed by consumers who open new accounts with financial institutions.

Even if you have a checking account with a bank and you decide to open
an IRA or a savings account with the same bank,
you can expect to be
asked some prying questions that may make you uncomfortable. Banks,
savings associations, credit unions, brokerages and mutual funds are
expected to comply with the provisions as of Oct. 1. Background checking
Here is what is required when a new account is opened:

A. The institution must verify the identity of any person seeking to
open an account by obtaining customer identification that includes:
1 Name
2. Date of birth
3. Address
4. Identification number -- a taxpayer identification number for American
citizens or a government-issued document for noncitizens

B. The institution must maintain records of the information used
to verify
the person's identity. Originally, the regulations required financial
institutions to keep a photocopy of
whatever document was used for identification. That rule has been changed;
they will only have to keep a written record of the document.

C. Determine whether the person appears on any lists of known or
suspected terrorists or terrorist organizations provided to the
financial institution by any government agency. Those provisions may
seem fairly harmless, but Boston-based Dalbar, a financial industry
consulting firm, says institutions have the ability to ask much more
intrusive questions should they decide it's necessary. For instance,
Dalbar says institutions could include questions about:

* Other accounts with links to the customer
* Nature of the customer's business and occupation
* Name and address of employer
* Customer's wealth
* Source of customer's income
* Customer's tax status
* Source of customer's funds used to open account
* Customer's investment objective